TTM Technologies Inc (TTMI)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -18,718 | 94,583 | 54,414 | 177,535 | 41,301 |
| Total assets | US$ in thousands | 3,323,660 | 3,323,600 | 3,025,550 | 2,895,940 | 3,560,930 |
| ROA | -0.56% | 2.85% | 1.80% | 6.13% | 1.16% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $-18,718K ÷ $3,323,660K
= -0.56%
TTM Technologies Inc's return on assets (ROA) has shown some variability over the past five years. The ROA decreased significantly to -0.56% in 2023 from 2.85% in 2022, indicating a deterioration in the company's ability to generate profit relative to its total assets. This negative ROA suggests that the company's assets are not being effectively utilized to generate profits.
Comparing the ROA of 2023 to the previous years, it is evident that the company's performance in utilizing its assets has declined. In 2022, the ROA was at a relatively healthier level of 2.85%, suggesting more efficient asset management in that period.
Looking further back, the ROA was 1.80% in 2021, 6.13% in 2020, and 1.16% in 2019. The significant drop in ROA from 2020 to 2021, followed by the subsequent increase in 2022 and the sharp decline in 2023, indicates a volatile trend in the company's asset efficiency and profitability.
In conclusion, TTM Technologies Inc's recent negative ROA in 2023 raises concerns about its ability to effectively utilize its assets to generate profits, marking a deviation from the trend observed in the previous years. Further analysis and investigation into the reasons behind this decline in ROA are warranted for a more thorough understanding of the company's financial performance.
Peer comparison
Dec 31, 2023